“All FDIC insured monies are completely protected. Even if the bank ran away with everything.”
This is a true statement and a fact. However, I’m fairly sure that the FDIC is insolvent.
The FDIC was definitely shaken during the 2008-2010 period. Their reserves were depleted because they had to liquidate, transfer accounts, etc., a substantial number of banks. If you want a good horror story, just read the FDIC reports from 2009 and 2010 to get a very clear picture of just how bad things were.
ConservativeMind and I have been going back and forth on some of the details, but as of today, the FDIC is solvent again. I don't know if they have enough in reserves to meet their goals, but they are no longer running in the negatives.